about selling goods received from a non-excisable mfg.

[MEHUL ASHAR]

Respected Sir,

                          How to sale goods received as sales return from a non-excisable manufacturer?Can I take credit on the vat invoice he has sent to me about the part quantity he has sent to me alongwith the 'Duplicate for Transporter copy' of mine.

[JSWSEVERFIELD STRUCTURESLIMITED]

Dear Mehul,

If it is a excisable goods you may have to sell charging Excise Duty. And also you can avail Cenvat Credit on the goods what the mfg. has sent based on DFT copy. and also you can avail VAT credit if the sale has taken place in the same state.

AI Summary

Cenvat credit entitlement may arise on returned excisable goods when supported by transporter duplicate for credit claim. If returned goods are excisable, onward sale must include excise duty. Cenvat credit is claimable on the goods where the recipient possesses the transporter duplicate (DFT copy) as supporting evidence, and VAT credit may be availed where the sale/return occurs within the same State.